If you are one of those persons who wishes to invest in properties in Australia, then it is high time you had a closer look at the various changes to the real estate market. This is because there have been some big changes to the rules and regulations covering buying and selling of properties especially when it comes to foreigners. That’s key reason why role of the certified property valuation company in Sydney is so big in coming years too.
As per the rules that were prevailing before these amendments, backing from a contract to buy or sell a property once it has been entered into would be quite difficult and virtually impossible in most of the cases. However, the recent amendments to the rules now allow for what is termed as a “cooling off period”. As per the amendment that is now in force, the buyer has three days during which time he or she could inform their decision to rescind from the contract irrespective of what has been entered into the agreement between the buyers and the sellers. While this augurs well for buyers, many sellers have been left fuming by this new law. Nonetheless when one looks at it from a fair business practices point of view, this change is very much in line with good business procedures and methods.
However, it should also be borne in mind that there are some exceptions to this rule which the buyers should also be aware of. A few such exceptions are given below:
• These changes to the law will not be applicable in case of auctioned properties that have been bought either three days before or three days after the date in which such auction advertisements have been published.
• If the same buyers and sellers have entered into a similar contract under similar circumstances, then too, the changes to the laws will not be binding on the sellers.
• These changes are only applicable for those properties that have been purchased for residential purposes. In case they are for industrial and commercial use, the law will not apply to both the stake holders.
• If a buyer happens to be a corporate body or real estate agent then he is not entitled to such “cooling off” period.
• Those who are buying such properties mainly with the objective of farming or if the size of the property in question exceeds 20 hectares, then the changes to the property rules will not apply.
However there is a small penalty that is payable by the purchaser if he or she decides to exercise this cooling off option. This is equivalent to 0.2% of the agreed purchase price or $100 whichever is higher. This amount is either payable by the buyer to the seller or if the seller has received any advance payment, then the seller is within his rights to deduced this amount and refund the balance.
Hence, as a customer and also as a seller, being aware of these recent changes to property rules and regulations is very important.
To begin with you should have a reasonably good knowledge regarding the entry and exit to and from the real estate market in this country. There are several special rules and also some special privileges for all those foreigners who are keen on investing in real estate rules in this country. You should preferably hire a professional to a get a move on on this matter. Trying to grasp all the rules yourselves is possible but it will take a lot of time. Further since the land is new to you, you may not know how to move forward. Therefore the role of a professional consultant becomes extremely important.
The next important fact that needs to be kept in mind is the importance of property valuation. Property valuation is a very vital subject and often confusing. Hence, as a prospective real estate investor from other countries you should also have a good idea about the various rules governing property valuer. Further as a buyer you should be doubly sure that you are paying the right price for the property that you are purchasing. It will not be right to go by market rates and estimates alone. The role of a property valuer is very important because he will value the property after taking into account various facts and figures and also by subjectively having a look at it.
You should take care to ensure that you are appointing the right property valuer. The first requirement that you should keep in your mind is to go in for valuers who are recognized and approved to run this business. The next important factor is to look for valuers who have their own websites apart from having at least a decades’ experience in this field. They should also have serviced quite a few foreign clients which will certainly add to your comfort levels.
In fine, buying a property in Australia can be a great decision provided you know what to look for as a foreigner/
While the main role of a real estate agent is that of marketing and selling, today, many real estate builders and promoters are taking this job upon themselves. This in no way undermines the role of a real estate agent but only is a pointer to the difficult situations in which they are being gradually pushed into. Under such circumstances it is quite evident that real estate agents would not like to be caught napping and become sitting ducks. They need to look at ways and means by which they can repackage their services and offer something new and unique to the customers. They should look at services that are complimentary to their main line of business.
Taking the above facts into account, there is no doubt that the donning the hats of a real estate agents and that of real estate valuer is something that could be very pertinent and useful. When a person offers both these services as a package, it is quite likely that he or she will be holding a new value proposition to the customer which would be difficult to ignore. For example, when a customer is on the look out for buying a real estate property, he certainly will have a real estate agent in mind. Once the initial marketing aspects and scouting for properties are over, the customer would certainly look forward to a good property valuer to take things forward.
Hence, if you are a person who is ready to offer both these services you stand a much better chance of clinching a deal simply because of the additional value that you are offering to the customers. Today’s customers are certainly short on time and would therefore not mind handing over the property valuation job to a real estate agent with whom they have built trust and confidence over a period of time.
Taking the above facts into account there is hardly an iota of doubt that it is very much desired that a real estate agent should also qualify and become a registered property valuer. It is a win-win situation both for the customers and the real estate agents-cum-property valuers.
First and foremost, it is a known fact that any real estate buying or selling involves thousands of dollars which could even touch millions in a number of cases. Hence, there is nothing wrong when both the buyers and sellers exercise extreme care and caution while moving ahead with such property transaction. They would like to put in their next step forward only when they are sure that everything is fine. However, for this to happen, it is very important for them to depend on the services of real estate lawyers and property valuers. While the former have a big role to play in ensuring the legalities of the entire documents that are a part of any real estate property, they also play a big role in helping negotiate with the stakeholders mostly on the legal points.
On the other hand, the role of real estate agents goes beyond the legal ramifications alone. There is a lot of subjectivity and qualitative information that is available from a property valuers report. Unlike the common perception that a property valuer only talks about figures and values, his report goes much beyond that. It talks about the area and the neighborhood where the property is situated. It also talks about the facilities and amenities that are available. Hence, it would be wrong to classify the job of a real estate valuer as that or a number or figure crunching facilities. There is a lot of subjectivity involved in his report which are very important to say the least.
This is perhaps the reason why real estate agents do not always go by the market value of a property. They do their own calculations and then come out with a value after taking into account a number of objective and subjective considerations. Further good real estate agents have a thorough knowledge about the local rules and regulations governing properties in their country and also in their city or town.
They are also very helpful when it comes to various other types of valuations. Some property valuations could be very complex and confusing and the scope for errors and mistakes could be almost nil. Under such circumstances, the role of a good valuer becomes highly critical and important. Considering the above points there is little doubt that a good valuer can be a friend, philosopher and guide in almost each and every matter related to buying and selling or properties. Even in cases where there is no commercial interest involves the role of these professionals is too obvious and important to be ignored.
If you are first time buyer or seller of home, apartment or any other type of property there is hardly any doubt that you should certainly take the help and services of a good real estate advocate or lawyer. This is because of various reasons. The sheer complexities of the various processes to be gone through before buying and selling a property is reason enough for taking the services of these professionals. As individuals having no experience in the real estate business it is quite likely you will not be aware of the various rules and regulations that needs to be followed when buying or selling a property. Missing out on even one process could become very costly and could damage the entire transaction. At times the mistake could come to light after a few months or even years and you could end up paying huge penalties and fines. All these can be avoided just by paying a few hundred dollars to your property lawyer who could take up all the responsibilities on his shoulders.
They also play a big in getting your property valued. Those who have been in the real estate market long enough would certainly understand the valuing a property forms an important part of the entire real estate buying and selling process. By appointing a good real estate attorney you will have access to some of the finest real estate appraisers who will ensure that the property you are planning to buy or sells represents the true market value. This will certainly give in you a sense of confidence and you will be able to move ahead in the transaction knowing fully well that you are getting full value for money.
A good attorney will also take care of drafting the entire sales deed and other legal documents. He will ensure that the entire process goes through till the consideration is paid and received by both the stakeholders. For transactions where there is no arm’s length consideration, here too the attorney will ensure that the ownership transfer goes ahead in a smooth and uncomplicated manner. Given the above facts it goes without saying that hiring a good real estate lawyer is very important to say the least.
First and foremost we have to keep in mind that are there are basically two types of valuation, i.e residential and commercial. The main objective of any valuation is to help the main stake holders, especially the buyers to have a good idea about the actual market value of the property that they are buying. Additionally, there are some statutory authorities also who would also like these valuation reports for calculating various figures.
Apart from merely assessing the financial value of a property there are a few other important jobs that are also performed by these professionals. They check the legality of a property and ensure that the documents are perfect from the legal point of view. At times the valuers may be required to go beyond their normal call of duty as far as valuation of a property is concerned. For example, they may be required to value properties that are quite some decades old. This would require digging into some old records. It is quite possible that the records might be in the manual form and hence getting hold the required information could be a big challenge.
Further when valuing a property it is not about just measuring the land and then coming out with a valuation report. It is much more than that and there are quite a few other matters that also should be looked into. A good valuer before submitting his valuation report would be required to pay a visit to the property concerned. Once the measurements have been taken, he is also supposed to have a look at the neighborhood and the quality of people and amenities available there. This is also goes a long way in impacting the value of the entire property.
When talking about the legal aspects of any property, the role of the valuer is to find out as to the number of owners of the same. This is very much possible because a property could have changed hands quite a few time before coming to the hands of the current owner. Hence, each and every transfer of ownership must have been properly recorded in the government books and the valuer has to ensure that it has been done and also should be able to submit proof thereof.
When submitting a valuation report it also is incumbent upon the valuer to give a clear information about the various features that are available in a property. This will certainly give a clear idea to the buyer whether the property is worth buying or not. In fact it is also quite common for property valuers to take full sized colored photographs of the entire property or also have them video recorded in their camera or cell phone. This will help in the buyer to have a better idea of the property instead of just hearing about it.
Though in many states of Australia engaging a real estate lawyer is not mandatory, there are many buyers and sellers who find it prudent to take their services. It is really very important to avail the services of these professionals. Let us try and find out the answers over the next few lines.
The main reason why it is important to go through buying and selling of properties with the help of an attorney is because of safety and security reasons. Real estate documentation is very complicated and equally complicated and complex are the rules governing buying and selling of properties. Even the smallest of mistake or misrepresentation of the law could prove very costly. This is perhaps the single biggest reason why it makes sense to go in for real estate agent attorneys.
When you are buying a property you have to go through various property and legal documents and also look for some information from government offices where such records are available. As a layman it may not be possible for us to understand the same and hence there is the need to seek the help and assistance of these professionals. Further, from the sellers point of view taking the assistance of real estate attorneys makes is easy for them to complete the entire process without any hitch or problem. Drafting the agreement, ensuring that the deal is as per the rules of the land are some important factors which are best left to professional real estate attorneys.
There is hardly any doubt that from the investment perspective, buying land or real estate in Australia is a great decision. However, there are some important considerations that must be taken into account before you actually take the plunge. You must have a clear understanding about the various income tax and property rules with particular reference to capital gains, stamp duty and other such things which could impact the overall cost of the property and could also have a bearing on the returns that you will get from such investments.
For example having an ABN or Australian Business Number could help you to save a lot of money by way of tax. However, you do not need this Number for buying the property but it is always better to have to avoid being taxed heavily on your property investments. If you are renting your property without an ABN you will end up paying almost 48.5% as withholding tax which certainly could be a big jolt to your entire investment objectives.
Further you should also be aware that the GST component could also erode the overall return on your property investments unless you know how to go about it. You have to bear in mind that GST is calculated on the market value of the property and not the payment you actually receive from your tenant. You should always be sure that you rent out your property to someone who is registered under GST because this will be beneficial both for you as the landlord and also to the tenant.
There are various other expenses that you could charge as non taxable entitlements and get benefits out of the same. However, since the entire rules are quite confusing and complicated you would do better to take the help of a professional auditor or accountant to avail the maximum benefit that are allowable under the law. Further, as a foreigner you ought to be more careful because there are separate set of rules for these people.
Buying and selling a home or a property is quite a big task because there are a number of steps to be gone through. First and foremost, if you are a small homeowner who is looking out for customers, it would always be better to take help of professionals to get the job done. There are various rules and regulations pertaining to property buying and selling and it is not expected that you would be in a position to know each and every one of them. Though you may have a broad idea about the important rules, you have to bear in mind that the rules keep changing quite often and being updated is something that possible for ordinary citizens.
Amongst the various aspects related to property transactions, valuation of property is something that is very important. This is a very important aspect of any buying and selling transaction and without valuing a property fixing a buying or selling rate would be difficult. However, as most of you would be aware valuing a transaction is quite complex because there are a number of elements to it. Further different yardsticks are used for different types of valuation. Hence, it may not be possible to paint the entire property valuation with one brush.
When valuing a property it is always better to look for professionals who not only have experience but are also registered and recognized by the authorities. Further, apart from ordinary property valuations where there are buyers and sellers quite a few time, valuers may also be required to go in for other types of valuations where a commercial motive might be absent. Additionally, valuation is not only about properties and real estate constructions. There are a number of other movable and immovable assets too where it is important to have regular valuations done.
Valuations certainly are a big subject and hence you should not treat it lightly as a customer. There are a number of websites on the internet which could be useful for you to get the right knowledge and information about the various types of valuations that one could think of. A few that are quite popular are asset register valuations, taxation valuations, valuation of superannuation funds, unit entitlement valuations, valuation for the purpose of finding out cost of replacement (mainly for insurance coverage) and last but not the least mortgage security valuations.
The next time around when you have a valuation requirement before getting in touch with a service provider, you should satisfy yourself regarding the type valuation that you are looking at.
There are three main reasons why someone invests in property whether it is in any part of Australia. It is either for using it for residential or commercial purposes, or gives it on rent or lease or look at it purely from an investment perspective. Whatever is the reason, as a property owner or tenant it would be useful if you had some reasonably good knowledge about property and tenant laws in Australia.
There is an independent organization known as Global Property Guide which could be a useful place where one could get the right information regarding tenancy and property rules in Australia. While there is no legal bar regarding fixing or rents after mutual consultations between owners and tenants, there are tribunals that could come forward should there be a dispute. Their role becomes quite important whenever there is a need to re-fix or renegotiate the rent or lease. There are also separate rules governing the payment of deposits at the time of entering into a rental or lease agreements. There are clearly stipulated guidelines for the amount of rental deposit payable. It would be anything ranging from two weeks to a few months at the most. There are also different slabs of deposit payable depending on the monthly rent or lease.
There are also rules governing fixed tenancies or periodical tenancies. Having a clear understanding of the same is required when it comes to serving notice period by either of the parties. It is expected that both the tenants and property owners should have a good idea about these rules to avoid confusion and misunderstanding at a later date.
There are a number of legislations that have been passed by various states and regions covering such tenancy and lease agreements. It would be useful to have a look at these agreements whenever possible.